Apr 262015
 


InsuranceBusters.net State Farm Criminal Lead Photo

State Farm – Criminals amongst us…

 

I have been fighting the good fight for quite some time now. First as a contractor, then as a Licensed Public Adjuster who does only that, fight the good fight, against your insurance company….. Why, you ask?

 

With the aforementioned said, my knowledge of the industry is extensive, to say the least. When my mother sustained a burst pipe in her home, I actually, for the first time, became that insured. I have been called an animal numerous times for my pursuit in what I believe in. Truth be told, the other side, which is a term we use to refer to the insurance carriers and anyone who works for them with strict intent of paying you less in order to save their company more, probably has many, much, much worse terms for me. To say I am protective of my family and those I represent, is an understatement. After all, my wife, Melanie Spoon and I dedicated our entire life to the pursuit of simply making them do what they are supposed to, indemnify you in the event of a covered loss. We founded a company and a concept that destroys every lie they have ever sold us… InsuranceBusters.net. and you are here now, in that world that is what we have uncovered as the truth as we know it today.

 

This particular post will be long. In the briefest, most effective manner I can possibly muster, I will explain what is going on, what has been going on, and what your insurance companies, our very own Department of Insurance, and our state legislators are up to. I will provide verifiable proof with each accusation.

 

What do I hope to achieve?

  1. No shame, #1 priority right now is my mother, and her problems are easily fixed. That should happen shortly after publication of this article. State Farm has issued two checks, totaling $53,250.38 As of Friday, April 24, 2015, those checks were uncashable.
    Letter from VP of Chase, stating checks had been presented three times, yet were no good.

    Letter from VP of Chase, stating checks had been presented three times, yet were no good.

     

    Check 1 Issued 04-10-15. Check was already late when issued, as evidenced by the internal tam report below. Still not able to cash 13 days later...

    Check 1 Issued 04-10-15. Check was already late when issued, as evidenced by the internal tam report below. Still not able to cash 13 days later…

    Check 2, Supplement to the original, yet most of these demands were made in the initial demand, meaning they should have been paid for then. Payment of this check validates the initial demand. Check is also no good.

    Check 2, Supplement to the original, yet most of these demands were made in the initial demand, meaning they should have been paid for then. Payment of this check validates the initial demand. Check is also no good.

  2. When attempting to cash these checks, we also confirmed, from not only the VP of Chase, as shown above, but from Team Manager of State Farm, Gian A. Carlo. Both stated that State Farm had strict rules with chase that they were not to cash any checks written over $10,000.00 written on a State Farm account. Unless you understood what he was actually saying, you would have done like 99.99% of the public. Accepted that as fact at went on attempting different methods to convert the checks to usable funds. To be clear, both told me to DEPOSIT THE CHECKS IN MY ACCOUNT, WHICH THEY KNOW AUTOMATICALLY PLACEs A 10-14 DAY HOLD, IN THIS, THE YEAR 2015, where you  can deposit a check with your phone…
  3. Take both pieces of information. A) A program exists on Chase computers that requires a check to be “Approved” by a method known as positive pay file. Even though State Farm has issued a check, two of them actually, and the initial was dated by computer 13 days prior to his letter stating it was still not there. That is three verified attempts to cash this check. B) The same VP above stated that this was only the first hurdle. He said that when the check actually appears, if it is over $10,000.00, the computer will automatically flag, with a do not cash order to the teller. Attached to this flag, he states, is strict instructions from State Farm NOT TO CONTACT STATE FARM UNDER ANY CIRCUMSTANCES. He stated that these were the “rules”.
  4. The avenue and method that led me here, in my opinion as humble citizen and lowly Public Adjuster, definitely not an attorney, were the criminal actions of State Farm, and every other insurer I have ever dealt with, in every aspect.
    Texas Unfair Claims Settlement Practices

    Texas Unfair Claims Settlement Practices.. These are not suggestions… They are the LAW!


  5. The procedures and knowledge insurers currently employee suggest that they have ample ability to perform within the limits currently in place, yet choose not to.
    State Farm's Internal Software that alerts them when they have not met deadline. 1 of 2

    State Farm’s Internal Software that alerts them when they have not met deadline. 1 of 2

    State Farm's Internal Software that alerts them when they have not met deadline. 2 of 2

    State Farm’s Internal Software that alerts them when they have not met deadline. 2 of 2


  6. Bring some accountability from the Texas Department of Insurance. There are strict rules on what should happen if an insurer were to continually violate statutes. Are these being followed?Texas Insurance Code 542.006. PERIODIC REPORTING REQUIREMENT.
  7. An answer to SB 1628 in the form of pulling back the veil on what it does and why. #6 above asks a question. That question is being asked because this new legislation, above all else, removes any and all penalties as mentioned above. The audits that are required, coupled with actually having insurers lose their license to do business in this state. GOOD! If the Department were to catch a Public Adjuster or anyone else acting in the manner that the carriers, who must have an individual license, backed by licensed individuals, they will run them out-of-town and straight to jail.
    When They are Supposed to Pay.

    When They are Supposed to Pay.

    What is "Supposed" to happen.

    What is “Supposed” to happen if they do not.

    Reporting and Audits.. things that all these insurers, especially State Farm, Should be doing.

    Reporting and Audits.. things that all these insurers, especially State Farm, Should be doing.

     

  8. How do I know they are not….. Spoon, Sandra Prompt Pay Complaint Faxed 4-7-2015 and Sandra Spoon UCSP Complaint 4-13-2015 and their response, which is typical…Spoon, Sandra TX Dept of Ins Complaint Ack 4-15-15 saying they are going to ask what the insurer wants them to do. By law, that I have posted above, State Farm has admitted to violating the prompt pay statute, and should be punished, logged, and be counting against whatever magic number it is that kicks in the audits, and penalty phase. Texas Insurance Code 542.006. PERIODIC REPORTING REQUIREMENT.
  9. Resolve the myth of insurers actually being responsible for insureds. We are always threatened that insurers may not “choose” to stay in Texas. Couple one of the largest states in the union, both size and population, paying some of the highest premiums in the nation…and tell me again they are going to pull out. Their investment cash flow from Texas insureds is massive. From the Incoming Commissioner’s own quote about the Texas Insurance Market: “One thing that surprised me is the sheer size of the Texas insurance market, which is larger than a great many countries. In fact, in the last couple of years, we’ve grown from being the 12th largest insurance market in the world to the 10th. The job of being commissioner is bigger than the state of Texas because what we do here literally does have an effect on the rest of the insurance world. It’s both exciting and humbling and I’m honored to be a part of it”. Found here.
  10. Prove that the ultimate goal of your insurance company is to sell you insurance, in order to gain investment capital. Once realized, the conclusion is simple. SB 1628 would allow them to sell you that insurance, invest your premiums, and never pay your claim. If by some miracle, you do find a PA or Attorney to take it, and the insurer does get caught, there will be no penalties. SB 1628 – Read for yourself what they would like to do.
  11. You did not buy insurance in order for the company to invest everywhere but your legitimate claim, should you file one. State Farm’s Spokesman admits, willingly, that 2/3’s of their profit comes from stocks and investments, yet will not divulge which ones. His quote, “The jump in profits and net worth was due to a positive year for State Farm’s stock investments, said spokesman Dick Luedke. About 60 percent, or $6.4 billion, of the gain in net worth can be attributed to stock investments. The remaining 30 percent of the $10.5 billion of net worth gains includes the property-casualty gains in underwriting and investment income realized from bonds.“Net worth is everything we have and that’s a lot. It did go up and it was a significant increase. About two-thirds of it was an increase in the value of our stock portfolio,” Luedke said. “It was a very good year for those who invested in stocks and bonds.”Luedke declined to give details on the businesses State Farm is invested in, but said the portfolio is diversified and comprised of companies, primarily in the U.S., that are “well managed and financed, generate cash and generally pay dividends.” from the article found here. Anyone who has gambled on anything of value, in any shape, form, or fashion should understand one basic principle. Bet small, win small. Bet large, win large. With 2/3’s being the minimal, as stated, how large of a bet do they have to make? If they made that bet, where in the hell did they get the money to float it? You got it….now you’re thinking. They got it from not paying claims, and manipulating the payments they do make in order to meet the current trend or need….. Now, skip ahead to 2014. This article is not as exciting in the fact that they attempt to downplay a net growth of close to 5 billion and profits of at least 3.4 billion in Property and casualty alone. Article found here.

 

Ok, now to spell it out for those who cannot see what is going on.

  • State Farm has software currently installed that tells them, in no uncertain terms, that they have timelines, and what they are, and when they owe. These timelines are contingent upon someone else entering the data correctly, but once entered, tell the truth on what was entered. They know they are not paying claims on time, yet choose to ignore the penalties. On $26,000.00 it was less than $55.00. That is cheap. Unless it is reported, and the Department of Insurance has to do something.
  • State Farm has made illegal deals with Chase, who then created programming inside their software to coincide with this positive pay file, requiring the number to appear on the screen. This could be called a security measure, until you add the fact that even the check that was computer generated, 13 days PRIOR to this attempt at cashing the check, and was still not present. If it was security, once State Farm Computers issued the draft, the order would go simultaneously to the Positive Pay File. It does not, as proven above.
  • State Farm has made additional illegal deals with Chase, who then again implemented the results of those deals into their software that would automatically”red flag” any checks over $10,000.00. This, in and of itself, is illegal. They may be able to attempt a lie, and suggest another security measure…you know… consumer protection. But the instructions attached to the file, to NOT CONTACT STATE FARM UNDER ANY CIRCUMSTANCES, destroys that claim. When I write a check, and issue it to anyone, I have promised I have the money in the account, in the bank that the draft was written on, and the recipient can walk in, with proper identification, and cash that check, regardless of the amount. The answers I received from all of them were the same, and the one they had told anyone has asked any of these questions or ran into this issue… Deposit in your bank, and wait the 10-14 day period. First off, that is not your money, it is the recipients. You can no longer control it or manipulate it in any manner. IT NO LONGER BELONGS TO YOU! And last, but not least.
  • Texas Department of Insurance, this one is particularly for you. When State Farm installs proprietary software on an outside vendors computer system, designed to automatically not cash checks over $10,000.00, they require the insured to have a bank account in order to be indemnified. In all my years, all my experience, every single claim we have ever done, every policy, rule, or code, I have never seen anything that would require an insured to first obtain a bank account prior to being indemnified. State Farm has done this systematically, and made sure no one was spared by using software to “catch” every single one. I have filed complaints, I will bring this matter to your attention again, tomorrow, April 26, 2015.
  • SB 1628  is a farce. From all the evidence above, and trust me, there is more, much more, Insurers not only have the capability to install software to tell them when they have broken the laws, they have enhanced that software to coincide with Chase @ a minimum, to hold insureds funds as long as humanly possible, in order to reap huge profits of money invested in other ventures. This bill would remove those pesky fees and certainly stop the avalanche of Department ordered audits and checks balances. This cannot pass. If it does, every single elected official who voted for it, is either completely ignorant to the world around them, or lining their pockets with insurers bribes to stay ignorant.

This is but a portion of what is going on. This is part 2 in the saga of my Mother’s water claim. One month and 11 days, she still has not received a dime, even though she has two checks worth over $53,000.00. They still owe her another 50.

Part 1: State Farm Strikes Again! – My own Mom, and every reason you should scream NO! to Texas Senate Bill 1628

Side Note: The check is a criminal offense, however, the second I remand the fraudulent documents to the police department, and sign the affidavit, they have all control. Meaning I have sworn I will only accept payment from the Police Department, after they have done their deal, collected, went through the ritual, and decide to issue her payment… for $53.000.00. I cannot do that. She is a nervous wreck now, even with my help, she is scared. Especially when their checks would not cash. The letter provided by Chase clearly states they cannot process the payments, because they do not exist. To validate, see Justin Nelson’s email verifying amounts, and that initial check was good as well, and there were no problems on State Farm’s end. This email, as proven by the date sent and received, was 2 days prior to the letter written by Chase Vice President stating, emphatically, that checks were not on State Farm’s positive pay file. After all this, after us calling, three trips to the bank….those checks are still no good.

Email from State Farm verifying Checks were good. Notice amounts in correlation to check s above.

Email from State Farm verifying Checks were good. Notice amounts in correlation to check s above.

 

Here, for the record, is most of the pertinent info of this claim, which has led me, from the insurers side, to uncover some of the most damning evidence against insurers, and their dirty tactics I have personally witnessed.

SPOON_SANDRA_2015_Final Draft with_without Removal Depreciation

SPOON_SANDRA_2015_RE_Final Draft with_without Removal Depreciation

Spoon, Sandra Prompt Pay Complaint Faxed 4-7-2015

Sandra Spoon UCSP Complaint 4-13-2015

Spoon, Sandra TX Dept of Ins Complaint Ack 4-15-15

 

That is it for the moment…

More on SB 1628 and what has happened so far in regards to our efforts to expose the truth about it.

What the Hail….is Really Going on in Texas – Part 1

What the Hail….is Really Going on in Texas – Part 2

What the Hail….is Really Going on in Texas – Part 3

What the Hail….is Really Going on in Texas – Part 4

 

Cal Spoon

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